India’s base oils supply rose to an eight-month high in January on the back of firm domestic production and higher imports.The country’s base oils and lube demand rose even more strongly, leaving supply lagging demand for a second month.The supply shortfall left buyers with lower stocks ahead of a round of base oils plant maintenance in India in February and a seasonal pick-up in lube consumption at the end of the first quarter of the year.Tighter supply and firmer demand raised the prospect of buyers tapping their lower inventories or seeking additional volumes from overseas markets to cover requirements.India’s supply rose in January, with domestic output holding firm at 125,000 tonnes..Production held above the 120,000 tonnes/month level for a third month, after previously slipping below that level during the five months to October.India’s firmer output coincided with a rise in the country’s base oils imports to a four-month high of more than 330,000 tonnes in January.Total supply, or output and imports combined, duly rose to close to 460,000 tonnes in January.The volume was up from around 430,000 tonnes in December and rose from year-earlier levels for the first time in four months.Supply still struggled to meet demand because of India’s persistently-strong domestic lube consumption.Total demand, or domestic consumption and exports combined, climbed to more than 500,000 tonnes in January for the first time in seven months.It also rose for the fifth time in six months from year-earlier levels.Strong demand kept pressure on India’s base oils imports to hold at elevated levels, especially with a likely drop in domestic output in February.But surplus supply in Asia, Middle East and US showed signs of dwindling in the first quarter of the year.Any such drop in availability could complicate moves to boost overseas volumes bound for India..India’s January base oils imports rise.India’s Jan lube demand extends rise
